Business diversification
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This presentation summarizes how Meghna Group of Industries diversified its business over 35 years from its origins as a small vegetable oil company. It discusses the three types of business diversification - concentric, horizontal, and conglomerate. Meghna Group pursued conglomerate diversification, expanding into over 30 industries including consumer goods, cement, chemicals, power, and more. It now employs over 15,000 people and exports products to over 15 countries. While manager and executive-level employees expressed some dissatisfaction with opportunities for advancement, recommendations were made to revise recruitment policies and further research reasons for dissatisfaction.
Business diversification
- 2. Group Name “Sunrises” Our topic Name: A small company how to increase business Diversification Meghna Group of Industries Passion for Progress
- 3. 1 Md. Arif Hossan Chowdhury 13310029 B 2 Md. Masfiqur Rahman 13310033 B 3 Md. Raihan Hossain 13310026 B 4 Md. Rayhan Mia 13310042 B 5 Md. Jibon 13310031 B Group Profile: Sunrises
- 5. Introduction • What is Business Diversification? • A risk-reduction strategy that involves adding product, services, location, customers and markets to your company's portfolio . • Many small companies are one-trick ponies, betting their entire futures on a single product, a single service, a single location or even a single customer. • But as you grow larger, you'll find opportunities to add products, services, locations, customers and markets. Examples includes: Beximco, Square, Meghna group of companies.
- 7. Types of Business Diversification? • There are three types of diversification: concentric, horizontal, and conglomerate. Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage.example :lux soap. Horizontal diversification The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. example :All-time bakeries. Conglomerate diversification A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate group.example:Meghna Group of Industries
- 9. Background: • Meghna Group of Industries (MGI) is one of the biggest & leading conglomerates of Bangladesh. The history of Meghna Group of Industries dates back to 1976 when its predecessor Kamal Trading Company was born. The groups humble debut occurred with the inception of Meghna Vegetable Oil Industries Ltd in 1989 on a small chunk of land at Meghnaghat in Narayanganj. Now, the group is running 30 Industrial units on over 350 acres of land. Meghna Group of Industries has been marketing various Fast Moving Consumer Goods (FMCG), Cement, Commodities, Chemical, Seed Crushing, Fish and Poultry feed, Power Plant, other bulk and industrial products under the brand name of ‘Fresh', ‘No.1' and ‘Pure'. Moreover, the group has Ship Building Dockyard, Shipping, Securities, General Insurance, Media, Aviation and many other businesses. • The Group has more than 35 years of national & global experience. In Bangladesh one in every three households use MGI brands and products. MGI has started to spread its footprints outside Bangladesh, especially in the Middle East, Southeast Asia, Europe, North and South America through exporting its various products.
- 10. Diversification into New Industries: Industries 30 & more to come Business Partners 3,000 plus Suppliers 1,000 plus Employees 15,000 (Professional, Skilled, Semi-skilled) and casual labours Brands Fresh, Super Fresh, Pure, No. 1 Products: Consumer goods, Cement, Chemical, Power, Fibre, Pulp & Paper, Feeds, Steel, Real Estate, Insurance, Securities and Media Export MarketIndia, Bhutan, Nepal, UAE, Kuwait, Singapore, Malyasia, UK, Hong Kong, SriLanka, Vietnam Oil Tanker : 15 Lighter: 31 Covered Van/Bus/Truck/PrivateCar/ Crane / Pay Loader / Pickup / Readymix carrier / Ambulance : 550
- 11. Masfiqur Rahman
- 12. Recommendation: • The company should revise the recruitment and selection policy for the executive level and also further research is needed to find out the reason of their dissatisfaction which will be easy in solving problems because the manager, non- executive and field forces are satisfied. Findings indicate that there is dissatisfaction among the manager, executive and non-executive level in term of opportunity for advancement and promotion.
- 13. Rayhan Mia
- 14. Conclusion: • In order to produce the best quality of any product the employees of the company must be skillful, knowledgeable, and fill of being as they are the members of one and same family for their better improvement.
- 15. Do you have any question?